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Hovland Forensic

Asset Misappropriation Investigation Services

Find missing inventory, cash and encumbered assets before they vanish permanently.

Start 30-min confidential intake

The Hidden Cost of Asset Misappropriation

Payroll fraud shrinks margins faster than inflation. Receivables that walk. Office supplies that never arrive. Every embezzled dollar carries traceable fingerprints, our job is to locate them and translate them into actionable proof.

Exactly What We Examine

  • Cash skimming & duplicate vendor checks
  • Ghost employees & inflated payroll lines
  • Inventory shrinkage under perpetual vs. periodic ‘free’ counts
  • Procurement kickbacks & inflated invoices
  • Credit-card misuse & out-of-policy reimbursements
  • Concealed bank accounts & off-book ledgers

Methodology Timeline

5-day analytical sweep of ledger-level anomalies (random-z, 80-20, Benford)

Digital imaging + keyword cash-out point analytics ↗ catalog of primary docs

Asset trace diagrams (chemical flow, web diagrams) presented in court-admissible PNG & vector formats

Executive memo + fully referenced report + deposition outline

Results Delivered for Clients

HOA Dues Theft

Management company was stealing homeowner’s dues from absent homeowners. Management company transferred funds directly from HOA bank account into their account. HOA collected on insurance policy due to fraud, management company was referred to the State for prosecution. 

Employee Embezzlement

Longtime employee was stealing customer payments on AR. Forensic tracing of timestamped reports and customer receipts clearly showed how employee was working the scheme. Employee took plea deal with DA.

Industry-Sourced Insight: ACFE Fraud Statistics

According to the “Occupational Fraud 2024: A Report to the Nations”

  • Organizations lose 5% of revenue to fraud each year
  • Median loss per case is $145,000
  • Typical fraud case lasts 12 months before detection
  • The longer a fraudster has worked for an organization, the more costly their fraud
  • More than half of occupational frauds occur due to lack of internal controls

With losses this huge nationwide, every missing dollar hurts, see how defensible evidence flips the odds and protects what’s yours.

What is asset misappropriation and its common schemes?

Asset misappropriation is non-cash theft or fraudulent use of company assets (e.g., inventory shrinkage, equipment sales, fake billing schemes). Per ACFE, it accounts for 86% of fraud cases, often via skimming, larceny, or purchasing fraud.

How do forensic accountants investigate asset misappropriation?

We use inventory audits, cycle counts, RFID tracking, vendor invoice analytics, and surveillance. Digital forensics on procurement systems reveal patterns, with quantified losses for recovery.

What should businesses do after detecting asset misappropriation?

Terminate culprits, contact legal council, file insurance/police reports, pursue civil recovery, and fortify controls (e.g., segregation of duties, surprise audits). We provide expert reports for litigation.

What documents should I gather before the free call?

Pull the last two years of bank statements, general ledger exports, check registers, payroll reports, vendor invoices, and any suspicious emails. Digital copies are fine, just keep the originals unaltered.

Is the investigation billed hourly or flat-rate?

We work exclusively at a transparent $250 per hour. 

Can the examination proceed if the suspected party refuses to cooperate?

Yes. We use subpoena-ready asset-tracing techniques, third-party bank records, and other forensics techniques that do not rely on the subject’s consent.

Got suspicions?

Schedule Your Misappropriation Review